PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey & Company intend to form a technology-led company to develop a platform aimed at transforming asset managers’ operating model, according to an announcement today.
The group said the company, HUB, had selected Microsoft as its technology platform provider; the platform, which will be “greenfield”, will be developed on Microsoft Azure cloud.
According to a statement from the HUB partners, the platform will be built by asset managers “to transform the industry’s operating model by providing flexible and modular solutions across middle and back office functions, all while reducing cost and mitigating risks”.
“The platform will accelerate the move to a digital operating model enabling asset managers to deliver innovative solutions to their clients both now and in the future,” it continued.
The company is to take a “data-first approach”, which the group said would break down silos and friction between systems and data.
“HUB promises to bring innovative solutions to important investment industry challenges,” said Ron O’Hanley, chair and CEO of State Street.
Emmanuel Roman, CEO of PIMCO, said the technology platform formed a core component of its broader strategy “which combines technology with portfolio management and client service excellence to provide investors with investment solutions”.
Luke Ellis, CEO of Man Group, added: “Man Group has invested heavily in developing our own proprietary technology infrastructure for many years now.
“Collaborating on this initiative with such great partners has allowed us to leverage our expertise with a view to helping transform the asset management industry’s operational architecture, which ultimately allows for better servicing of clients’ needs.”
Financial terms of the joint venture were not disclosed.